India's leading conglomerate Reliance Industries Ltd (RIL) and Abu Dhabi Chemicals Derivatives Company RSC Ltd (TA’ZIZ) on April 26 announced the signing of shareholder agreement for the Ruwais chemicals project.
Formally known as the TA’ZIZ EDC & PVC project, the chemical production facility will involve a "total investment of over $2 billion", and will be set up at the TA’ZIZ Industrial Chemicals Zone in Ruwais, the town located 240 km west of Abu Dhabi, the capital of the United Arab Emirates (UAE).
Reliance is a "strategic partner with Abu Dhabi National Oil Company (ADNOC) and ADQ, an Abu Dhabi-based investment and holding company, in TA’ZIZ EDC & PVC", a joint statement noted.
"The TA’ZIZ EDC & PVC joint venture will construct and operate a Chlor Alkali, Ethylene Dichloride (EDC) and Polyvinyl Chloride (PVC) production facility, with a total investment of over $2 billion," it said.
These chemicals will be produced in the UAE for the first time, unlocking new revenue streams and opportunities for local manufacturers.
The formal shareholder agreement was signed by senior executives during a visit of RIL Chairman and MD Mukesh Ambani to ADNOC headquarters, where he met Dr Sultan Al Jaber, who is the UAE's Minister of Industry and Advanced Technology and also the MD and Group CEO of ADNOC.
They "discussed opportunities for partnership and growth in Upstream, new energies and decarbonization across the hydrocarbon value chain", the press release noted.
Ambani and Al Jaber exchanged a signed framework agreement between ADNOC and Reliance to explore collaboration in the exploration, development and production of conventional and unconventional resources in Abu Dhabi as well as in decarbonization of operations, including in carbon dioxide (CO2) sequestration, it further stated.
"Reliance is a valued strategic partner and our collaboration at TA’ZIZ underscores the important role of industrial and energy cooperation as a means of strengthening the deep-rooted and friendly ties between the UAE and India. We are building on this partnership and the progress at TA’ZIZ to unlock more opportunities to drive the UAE’s industrial and manufacturing growth, while advancing cooperation on decarbonization, new energies and upstream production," Al Jaber said.
According to Ambani, RIL and TA'ZIZ made a "quick progress" with the joint venture of TA’ZIZ EDC & PVC. "This joint venture is a testimony to the strong and growing ties between India and the UAE and will be a benchmark for more such projects built on strengths of the two nations. I am looking forward to implementation of the project at an accelerated pace, taking a step further in enhancing lives of our people in the region," he added.
Ambani, during his Abu Dhabi visit, also met Mohamed Jameel Al Ramahi, CEO of the UAE government-owned renewable energy company Masdar, to explore potential opportunities for collaboration in renewable energy and green hydrogen.
Ambani was briefed on the UAE’s ambitious plans to grow its world leading renewable energy portfolio and strengthen its clean hydrogen production capabilities, as described in the country’s “Hydrogen Leadership Roadmap", the statement said.
In December 2021, it was announced that the UAE will create a global clean energy powerhouse, under the Masdar brand, consolidating the efforts of ADNOC, TAQA and Mubadala in renewable energy and green hydrogen to create a new world-class entity.
Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary
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